This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

A.M. Best Revises Outlook To Positive For Triple-S Management Corporation And Its Subsidiaries

Stocks in this article: GTS

A.M. Best Co. has revised the outlook to positive from stable and affirmed the financial strength rating of B++ (Good) and issuer credit ratings (ICR) of “bbb+” of Triple-S Salud, Inc. (TSS) and Triple-S Vida, Inc. (TSV). A.M. Best also has revised the outlook to positive from stable and affirmed the ICR of “bb+” of the holding company, Triple-S Management Corporation (TSM) [NYSE: GTS].

Concurrently, A.M. Best has affirmed the FSR of A- (Excellent) and the ICR of “a-” of Triple-S Propiedad, Inc. (TSP). The outlook for these ratings is stable. All companies are domiciled in San Juan, PR.

The revised outlook reflects TSS and TSV’s strong foothold in government-sponsored health insurance operations, sustained competitive positioning in commercial group business and strengthened risk-based capital position. The TSM organization continues its pursuit of a careful business expansion and diversification strategy that includes the acquisition of complementary provider services while raising its percentage of revenue between its members, providers and employer groups. TSV provides life insurance and other ancillary services, which complements the brand and enhances product diversification objectives of the organization. For TSV, risk-adjusted capital has been solid over the last five years, reflecting a favorable earnings trend and includes the distribution of interest payments on its surplus notes. The ratings also reflect TSP’s excellent capitalization, solid operating profitability, which has benefitted from favorable reserve development over the long term, and a strong market presence within Puerto Rico.

Partially offsetting TSS’ positive rating factors is the potential for goodwill impairment and capital strain as a consequence of its purchase of Socios Mayores en Salud Holdings. There also is the potential for integration risk associated with American Health Inc. TSS is exposed to strong business concentration risk with respect to the organization’s significant participation in the government business sector. Statistically, Puerto Rico’s economy has worsened over the last five years; however, TSS reported increased earnings and maintained consistent return-on-revenue scores, despite the tough economic environment. TSV expanded into annuity products and continues to maintain a high percentage of surplus notes in the construction of its capital balance.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs